A very well written article with valid arguments and reasons. Indeed a good read! The process it has described, is very simple.

Banks and brokers have accumulated a lot of bitcoins from their OTC market deals. Now they have bought future contracts with negative outlook and started selling the accumulated bitcoins to crash the market. Simple and effective strategy to make tons of cash!

However, I doubt any regulated banking institutions can do this legally! Shady OTC deals are happening for a long time so can't comment on that! But to bring down the price at this scale, the OTC volume needs to be enormous!

The scenario as described in the article is definitely possible and the way it was written, is very convencing as well. Just thinking about the volume we will require to do such kind of manipulation. Any idea?

A very well written article with valid arguments and reasons. Indeed a good read! The process it has described, is very simple.

Banks and brokers have accumulated a lot of bitcoins from their OTC market deals. Now they have bought future contracts with negative outlook and started selling the accumulated bitcoins to crash the market. Simple and effective strategy to make tons of cash!

However, I doubt any regulated banking institutions can do this legally! Shady OTC deals are happening for a long time so can't comment on that! But to bring down the price at this scale, the OTC volume needs to be enormous!

The scenario as described in the article is definitely possible and the way it was written, is very convencing as well. Just thinking about the volume we will require to do such kind of manipulation. Any idea?

Estimate from the TABB Group (in a $5000 report) that OTC crypto markets exceed exchange volumes by 2-3x. That would mean 1-1.5MM BTC is traded OTC *daily*. That's surely enough to organize a drop like we saw... can u imagine... this f***ers trade 1-1.5MM and bypassing the open market. Normally we should see BTC at 15k with that numbers... It's unbelievable. I had the same feeling... it's indeed a good read.

This is a plausible scenario. What could actually go wrong in an OTC deal wherein two parties both agreed to terms, right? Safe and easy money, with low risk of getting burned: that's what banks do. No remorse on what's going to happen in a market, just fast, cold hard cash is what's important at the end of the day.

What also amazes me the most is how these banks and big money get out of such steamy situations once they got busted, or how things like this still happen in a regulated platform/market/economy? There's so many questions that spring to mind once these certain topics pop up. We all know that banks produce big profits in dirty ways in such a short span of time, but how they keep on doing this for centuries without the public realizing is insane to comprehend.

Perhaps the next major boom in the crypto market will be related to decentralized exchanges.

Hope so. There is an issue about this as well because recently etherdelta CEO was accused of operating an illegal exchange for it being decentralized and not registered which as far as I remember he payed about $300k for it. Its possible that they'd also do this to all DEX.

It seems like true decentralization can only be achieved in a utopian society. But when you factor in greed and desire to control you have lots of big players fighting to control enough of it to influence the whole of it. And the little players suffer the most.

I don't think that this is a strategy that can be infinitely repeated, the larger the currency grows the more they have to own to control it. Eventually we can have a diverse distribution which could easily resist such attacks.

We all knew this was going to happen. It was the smart thing to do if you had a lot of money, enough to move the markets. You put 200 million dollars on the table and you can do anything to a market worth as much as a single company (Amazon). 200 million goes in, starts a bull run. Then you wait for it to unfold, short futures, get some more rich people into play, tell them to short and dump their coins on the same day. That's all it takes. If the market grew bigger it would be harder for them to do this. Maybe if we went to 300 billion...

A very well written article with valid arguments and reasons. Indeed a good read! The process it has described, is very simple.

Banks and brokers have accumulated a lot of bitcoins from their OTC market deals. Now they have bought future contracts with negative outlook and started selling the accumulated bitcoins to crash the market. Simple and effective strategy to make tons of cash!

The scenario as described in the article is definitely possible and the way it was written, is very convencing as well. Just thinking about the volume we will require to do such kind of manipulation. Any idea?

Buying all the way from 10 000 to 6 000 then dumping it to reach 4500 is a plausible scenario?Seriously?And no words on how inevitable all that money that was poured in those buying deals helped prop the price?

I honestly wonder if it's safe to make a fart without somebody coming with a conspiracy theory why the evilz banks are crushing cryptos because of that fart. I've yet to witness a price drop that is not the fault of either banks, wall street, goldman or the reptilians.

I have read a lot about OTC now. It is indeed that it bypasses the order book. Neither the sell order nor the buy order appears in the order book. I press on MKT SELL and the order is not made visible to the order book. The exchange pays me directly, so to speak. The collected bitcoin are then sold to the broker. So the broker can place buy orders in a certain range.

That seems to be common practice at Wall Street. Order packages are moved back and forth between liquidity providers. Specifically, they do that for assets that are titled "hard-to-deliver". Assets for which there is little liquidity. There is much more. They lend the same securities several times and so on .. very very interesting inside information is that ..

Buying all the way from 10 000 to 6 000 then dumping it to reach 4500 is a plausible scenario?Seriously?And no words on how inevitable all that money that was poured in those buying deals helped prop the price?

I guess they were not buying from 10,000 to 6,000.. they can buy in a specific range with OTC e.g. just below 6,500

Nope it is not yet the end of bitcoin and it is still starting to get warm up. Just imagine that this is system is like a gambling with the participation of all people around the world. I consider it gambling whatever nerd user here will call about bitcoin as how it shoulf be use but since it does compromise the money of others being invested in cryptocurrency so I guess this is like casino games that until now is still operating.

I like the idea in the article that big wallets need to be monitored. Such websites should actually be easy to setup by fullnode operators.

I see the following relationship:

* If large amounts of bitcoins flow into the wallets of the big exchanges, then the danger of a price crash increases.Why else whales move their Bitcoins into Exchanges?

* If the wallets of the exchanges become smaller, a price stability is to be expected. Bitcoin buyers are backing up their bitcoins in their private wallets. Means less selling from big whales is to be expected.

I see a new trading indicator I am wrong or how do you think about it?

However, I doubt any regulated banking institutions can do this legally! Shady OTC deals are happening for a long time so can't comment on that! But to bring down the price at this scale, the OTC volume needs to be enormous!

I think we should not be blinded by the pious image of the banks. Look what happened one week ago on the forex market...

"BlackRock and Allianz sue 16 Banks in the U.S. over Currency Market Rigging"

It's an age old story. To the finance professionals most of the people in the crypto space are as threatening as puppies and just as experienced.

not only in the crypto scope, bankers often do things with the world economy, even though people rarely know about the average and they do this of course indirectly. So the conlusion is the rich will continue to repeat which is more or less the same as the previous pattern until there are no investors or fresh money entering crypto

I doubt any regulated banking institutions can do this legally! Shady OTC deals are happening for a long time so can't comment on that! But to bring down the price at this scale, the OTC volume needs to be enormous!

That is why I think that while this story is probably true for some brokers, I don't think that banks could really get the majority to crush the market like this. I don't think they are smart and organized enough for these things. Such an elaborate plan needs massive cooperation to maximise the effect. Some banks can surely unite, but I don't think that enough of them can and care about cryptos at all. The reason behind the massive drop is BCH ABC and SV split. Bitcoin cash suffered severely because of this, other top coins also gave up their previous positions.

I doubt any regulated banking institutions can do this legally! Shady OTC deals are happening for a long time so can't comment on that! But to bring down the price at this scale, the OTC volume needs to be enormous!

That is why I think that while this story is probably true for some brokers, I don't think that banks could really get the majority to crush the market like this. I don't think they are smart and organized enough for these things. Such an elaborate plan needs massive cooperation to maximise the effect. Some banks can surely unite, but I don't think that enough of them can and care about cryptos at all. The reason behind the massive drop is BCH ABC and SV split. Bitcoin cash suffered severely because of this, other top coins also gave up their previous positions.

Banks do not need to merge. View the entire asset ownership chain. You will see that all the main banks of the world belong to one group of people.

I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at

I do not really believe in this story. The operations described here relate to operations with a high degree of risk, which means banks would be forced to form a reserve for them, and therefore double the financial burden. It’s another thing if we are talking about the owners of banking groups that operate with their personal assets, then it is quite possible.

You believe it collapses? Big banks around the world have their ways of doing things, and many banks are supporting anonymity in the Crypto industry. The market fell without any withdrawal. I believe this is a time of considerable investment.